Become Your Own Guru

Well, it's not that bad yet, but the debate on the market's direction could end up in a sea of green peas and custard pies.

I saw the potential for a big food fight last weekend when my favorite neural network guy called for a renewed decline at the same time my preferred Elliott Wave guy called for a rally. It doesn't get any stranger than that.

When I get caught up in the market-calls game, my wife gives me a swift kick back to reality with four simple words -- "make any money today?" There's a big difference between thought and action, when it comes to the financial markets. And many folks miss the best trading opportunities because they're unable to turn reflection into response.

Your Money, Your Risk

Financial journals and publications, like RealMoney, encourage market debate for obvious reasons. But I sometimes forget this is just a form of entertainment for our readers. When we sit down to trade, opinions don't amount to a hill of (thrown) beans because we have to live with our buying and selling decisions. The truth is, nothing else matters.

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I wrote a column last June on the differences between spectators and speculators. My thesis was the long bear market created a subculture of market critics who never risk their own money. Instead, they inhabit the stock boards and e-mails, firing their own opinions at those who make trades for a living. This is an obvious waste of time and text because it gives them only an ego thrill, not a financial payoff.

Most spectators get a better buzz from football than the world markets, so I don't understand why this pastime gained such popularity in recent years. Perhaps it has to do with a culture built on vicarious thrills. Or maybe folks got so burned in the bear market they don't have any real money to trade with. In any case, the exercise is a form of self-abuse.

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Alan Farley is a professional trader and author of The Master Swing Trader. Farley also runs a Web site called HardRightEdge.com, an online resource for trading education, technical analysis and short-term investment strategies. At the time of publication, Farley did not have any positions in any of the stocks mentioned in this article, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Farley appreciates your feedback and invites you to send it to [e-mail].. Also, click here to sign up for Farley's premium subscription product The Daily Swing Trade brought to you exclusively by TheStreet.com.

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